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U.S. APPROVES
DEVALUATION
Cautious Optimism
On New Move
Australian Associated Press
WASHINGTON, Jan. 26.
A State Department
spokesman, quoted by Reu-
ter, said today that while
the US Administration might
sot approve all the details of
the devaluation of the franc. It
"liked the Idea."
Replying to reporters' ques
tions, the spokesman said:—'We
should make it clear that the
United States heartily approves
pi an adjustment in the franc
at the present time."
He expressed confidence that
the French Government would
apply its new foreign exchange
measures in close collaboration
with members of the Inter
national Monetary Fund, so as
to reduce to a minimum any ad
verse consequences.
"the 'US Government tried
throughout the period of con
sultation which preceded toe
French decision to view with the
utmost . sympathy the great
efforts which the French Gov
ernment was making to stabilise
the country's economy.
?The United States Is reason
ably optimistic about the result
of foe devaluation of the franc,
but if our worst fears are rea
lised the effect on the European
Recovery programme will be
serious."
Many Washington officials see
the French measures as a threat
to tiie authority of the Inter- ?
national Monetary Fund, a'
SDOkesman for which admitted
that there was no punitive
action that could be taken
against France if she continued
her devaluation experiment in
definitely and. thereby damaged
other countries. ,
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